best execution possible when your brokerage window
on the markets is so narrow.

Looking at Fig 5, which shows the extent to which
asset managers are using algos to execute their flow,

shows the breaking of a trend which has seen moreand more flow heading to algos. The proportion offirms executing 40% or more of their flow by algo hasbeen growing steadily for years but has dramaticallyfallen back this year to 42.57%, lower than it was evenback in 2014. Reasons for this trend are unclear, butit has been speculated that firms may be getting abetter handle on when it is appropriate to use algosand when to instead use a sales trader. Also, a drive formore block trades could be pushing asset managersaway from algos and towards negotiated trade options.

Lastly, Fig 6 shows the types of algos firms in Asia are
using. VWAP has long been a popular algo for firms
across the world and in Asia and it still is with 69.8%
of firms using this algo. TWAP has also seen a boost
in its popularity, going from less than 20% in 2016 to
over 49% this year. Participation algos have also been
among the most popular in Asia and this year they
have proved the most popular algo, used by close to
68% of firms.

Proportion of Tradesby Value of Respondents of Respondents of Respondents of Respondents of Respondents